Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-08-18
RAILROAD INVESTIGATION.
A synopsis of the Testimony and State
Inents Submitted Yesterday.

SAN FRANCISCO, August i1th.-The work of the
INVESTIGATING Committee is nearing its end and
with nothing gained that was expected on the
part of its projectors. The testimony to day was
Il continuation OF evidence as to the great diff
culties Under which the builders of the Central
Pacific road labored in its construction. Among
these the reports of the engineers, made during
the first years of construction were filed with
the Commission.
came acquainted with Stanford Crocker and
their associates, al that time BEING engaged in
banking at sacramento. He knew the early
history of the railroad, and was often apnlied to
by its projectors and their contractors to loan
them money. At one time Stanford endeayored
TO induce him 10 take an interest in the enter
prise, which he declined. His reasons were the
doubtfulness the success of the road and the
feeling that Stanford and his associates would
fail and be involved in financial ruin In IS53
the witness and several capitalists associated
with him were offered a controlling interest in
the Central Pacific Company or so per cent of
the stock, which was then known as me
Croeker, Huntington and Hopkins interest He
could not remember the terms of the offer but
thought II was a proposition to buy out all the
railroad men except Stanford in lump He
declined, however.
In answer to questions by Mr.. Anderson, wit
ness said that before the commencement OF the
Central Pacific Railroad Stanford at the bank
managed by witness was always allowed any
sum he wanted, often as high MS 500 COO The
same was true of Crocker Huntington and Hop
kins. After the commencement of the railroad
the credit of all these men WAS impaired owing
to the hazardous character of the enterprise.
In answer 10 lurther inquiries by Anderson as
to the availability OF the bonds granted to the
company from 1866 to 1869 Mr. Mills thought il
would have been difficult to sell some of them
at that time for any amount whatever. His un-
dcrstanding of the reasons for the organ ization
of the Contract and Finance Conlpany was that
II was thought to be the best plan for inducing
Eastern capitalists to help build the road, as
through 1t they could be paid in stock of the
Central Pacific Company.
TUE f,oN,,recrpN-io vV,rr-. -r,-.-r.,-...
Richard F. Stevens, expert and accountant for
the Commission, was called to testify He said
he had been engaged for many years in exam
ing the accounts of railroad corporations, and
since tae tlrst OF last July in examining the
books of the Central Pacific Company. He said
that every facility had been extended to him by
the officers OF the company, and no effort had
been made TO conceal anything from him He
testified that he had made an abstract of the &C
counts of the Central Pacific Company down to
1870, and he offered big bundle of papers CON
tanning MS tlgnres to the Commission. He said
they showed the cost of constructing the Central
Pacific Railroad in detail He said the total
amount paid 10 Charles Crocker & Co.. the first
contractors, for constructing the road from Sac
ramento to the State line was SS,5S6,Ol 40 ::
stock, par value, Sl4, ,70l, no - and 500 OO0
in bonds. The amount paid the Contract and
Finance Company for constructing the road east
OF the state line to Promontory Point was Si7,-
$50, tO0 one-nalf of which was cash and one
half stock, or St3 69S 600 in money and stock the
par valne OF which was the same. He said his
papers showed that the Central Pacific paid the
Union Pacific for the 49, miles of road from
Promontory Point to Ogden g, ,lSs, 900, Of which
SS00, 900 was in cash.
The Western Development Company received
for constructing the Northern Railway and
Berkeley Branch, said Mr. stevens. IS, ,o5S. 80 in
stock and bonds; which was, in effect, that
after building the branches, 1t owned them
The witness gave the cost of building the
Amador branch and other roads constructed by
the same corporation; also, the cost OF building
the Southern Pacific of California and some Of
its branches, al of which were paid for in the
stock and bonds of the roads themselves. The
Western Division Company was paid on its cen
tracts for building 40f miles of the Southern Pa
cife OF California sl4. .576. 900 in bonds and Sl4
5I6 200 in stock; for the Southern Pacific of Ari-
zona, SO 60i, % in bonds and So 995 GOO in stock
the cost of constructing the road being s7.O03.
$50 %; for building the southern Pacific of View
Mexico, 81, i,1SO 90 in stock and Sc SIS 500 in
bonds, the cost Of building being $500 $50 So.
The value OF the stock and bouds is given at
par, aud the cost of construction in q "a The
construction of the California and Oregon road
from Delta. lOl miles TO the State line. has cost
the Pacific improvement Company, for construc-
tion account, up to June 30tb and rolling stock
up TO April 30th, So. 1859 80.
Mr.. Raymond asked him his opinion as an
expert as to how the books Of the railroad com
pany had been kept.
MI. stevens said that looking al them as a
bookkeeper he should say that they had been
dence OF any alterations having been made in
the accounts
Mr.. Raymond said It must be remembered
that none of these men were railroad men
when they began. ar d ii would not be any won
der Il their books were somewhat crude The
company only claim to have honesty kept their
books.
In response to questions the witness said the
books he asked for mad all been furnished
promptly, except such as were missing. The
missing ones were the books of the Contract
and Finance Company, and one or two Minute
books. The vouchers we're in demoralized
eondition-some of them were ONLY scrans M
paper, and others unsigned.
NJ. Cohen asked the witness e he was NJ;